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Companhia Paranaense de Energia Pfd (ELP)
NYSE:ELP
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Companhia Paranaense de Energia Pfd
(NYSE:ELP)
Rating:78Outperform
Price Target:
$10.00
▲(13.64%Upside)
Positive Factors
Analyst Rating
Analyst reiterates a Buy rating with a price objective of R$12, reflecting confidence in the company's strategic moves and financial outlook.
Asset Rotation
Copel announced a positive asset rotation involving the Baixo Iguaçu Hydropower Plant, which adds ~1% NPV to the base-case valuation and could potentially result in additional dividends.
Dividends
Copel announced an additional R$1.3bn dividends related to FY24 results, leading to a 4.3% dividend yield and an 86% total payout FY24.
Negative Factors
Operational Results
Copel reported slightly below estimates 4Q24 operational results with adj. EBITDA at R$1.3bn, down 13% YoY and 5% below BofAe and BBG Consensus.
Companhia Paranaense de Energia Pfd (ELP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.46B
Dividend Yield4.95%
Average Volume (3M)240.86K
Price to Earnings (P/E)12.6
Beta (1Y)0.32
Revenue Growth-7.02%
EPS Growth17.33%
CountryUS
Employees4,396
SectorUtilities
Sector Strength77
IndustryDiversified Utilities
Share Statistics
EPS (TTM)0.15
Shares Outstanding335,867,070
10 Day Avg. Volume285,378
30 Day Avg. Volume240,864
Financial Highlights & Ratios
PEG Ratio0.89
Price to Book (P/B)4.42
Price to Sales (P/S)0.00
P/FCF Ratio31.84
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$12.00Price Target Upside36.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Companhia Paranaense de Energia Pfd Business Overview & Revenue Model
Company DescriptionCompanhia Paranaense de Energia Pfd (ELP), commonly known as Copel, is a prominent utility company based in Brazil. It operates primarily in the electricity sector, engaging in the generation, transmission, distribution, and sale of electric energy. Copel serves both residential and commercial customers, providing essential energy services across the State of Paraná and beyond. The company is also involved in the telecommunications sector, offering a range of services including internet and data transmission.
How the Company Makes MoneyCopel generates revenue through several key streams within the energy sector. Its primary revenue source is the sale of electric energy, which encompasses generation, transmission, and distribution services. The company operates numerous power plants, including hydroelectric, wind, and thermal facilities, which collectively contribute to the generation segment. Revenue from the transmission and distribution of electricity is generated through regulated tariffs set by the Brazilian electricity regulatory agency, ANEEL. Additionally, Copel earns income from its telecommunications operations, offering internet and data services to both residential and corporate clients. The company's financial performance is influenced by regulatory policies, energy demand, and strategic partnerships that enhance its operational capacity and market reach.
Companhia Paranaense de Energia Pfd Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q4-2024)
| % Change Since: 6.02%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call showcased a strong financial performance with significant dividends and strategic asset optimization. While there were challenges related to wind asset performance and trading, the company maintains a positive outlook with a focus on long-term growth and operational excellence.Q4-2024 Updates
Positive Updates
Strong Financial Performance
Copel reported a fourth-quarter adjusted EBITDA of BRL1.3 billion and net income of almost BRL600 million. For the full year, adjusted EBITDA reached BRL5.1 billion with net income of BRL2.8 billion.
Significant Dividend Proposal
Copel proposed a robust dividend payout for 2024, with a total of BRL2.3 billion, representing a payout ratio of 86% and a dividend yield of approximately 8.4%.
Copel Distribuicao's Record Efficiency
Copel Distribuicao achieved a 23.6% increase in EBITDA in Q4 2024 compared to the previous year, with efficiency reaching almost 46% above the regulatory EBITDA.
Asset Optimization and Value Creation
Copel completed several strategic moves including an asset swap with Eletrobras, the sale of small hydropower generation assets for BRL450 million, and the sale of Baixo Iguacu for BRL570 million.
Long-Term Strategy and Investment Plans
The company maintained a focus on operational excellence, capital allocation, and a consistent energy trading strategy, aiming for significant future growth and efficiency.
Negative Updates
Impact of Wind Asset Performance
The performance of wind complexes was negatively affected by curtailment and unavailability, leading to a BRL93 million impact. Curtailment was at 13.1% in Q4 2024 compared to 8.3% in Q4 2023.
Trading Challenges
Copel experienced a negative EBITDA of BRL15 million in trading for Q4 2024, primarily due to lower trading margins and price variations in submarkets.
Increased Leverage Due to Grant Bonus Payment
Leverage increased to 2.6 times net debt over EBITDA due to the grant bonus payment for the renewal of power generation plants, though it remains below the 3.5 times covenant limit.
Company Guidance
In the earnings call for the fourth quarter of 2024, Companhia Paranaense de Energia (Copel) reported sound financial results, highlighting an adjusted EBITDA of BRL1.3 billion and a net income of approximately BRL600 million for the quarter. For the entire year, the adjusted EBITDA reached BRL5.1 billion, with a net income of BRL2.8 billion. Despite challenges such as curtailment and the temporary unavailability of some wind turbines, Copel Distribution significantly contributed to these results, achieving an EBITDA efficiency almost 46% above the regulatory level. The company proposed robust dividends totaling BRL2.3 billion for the year, reflecting a payout ratio of 86% and a dividend yield of approximately 8.4%. Copel's strategy included noteworthy asset swaps and sales, such as the asset swap with Eletrobras and the sale of its stake in Baixo Iguacu for BRL570 million, indicating a disciplined approach to capital allocation. The company also emphasized its ongoing efforts to optimize operations, improve asset management, and capitalize on opportunities in energy trading, while maintaining strict cost controls and a strong focus on sustainable growth.Companhia Paranaense de Energia Pfd Financial Statement Overview
Summary
Companhia Paranaense de Energia Pfd exhibits a strong financial standing with robust profitability. The income statement shows solid operational efficiency with high EBIT and EBITDA margins. The balance sheet is stable with a healthy debt-to-equity ratio and solid equity base. Cash flow management is efficient with positive free cash flow growth.Income Statement
The company has shown strong financial performance in the TTM (Trailing-Twelve-Months) period. The gross profit margin stands at 20.35%, indicating efficient cost management. The net profit margin is 12.73%, reflecting solid profitability. The revenue growth rate is 2.10% from the previous year, showcasing steady growth. Additionally, the EBIT margin is 31.23%, and the EBITDA margin is 24.48%, both of which are robust, indicating strong operational efficiency.85
Very Positive
Balance Sheet
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.73, indicating a balanced use of debt. The return on equity (ROE) is 11.20%, which is healthy, suggesting effective use of shareholders' funds. The equity ratio is 43.61%, showcasing a solid equity base relative to total assets.78
Positive
Cash Flow
The cash flow statement presents a positive outlook with a free cash flow growth rate of 6.84% over the previous period, highlighting strong cash generation. The operating cash flow to net income ratio is 1.22, and the free cash flow to net income ratio is 1.18, both of which indicate efficient cash flow management and conversion of profits into cash.80
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 23.13B | 22.65B | 21.48B | 20.54B | 23.98B | 18.63B | Gross Profit |
| 4.71B | 4.07B | 4.90B | 4.93B | 4.27B | 4.06B | EBIT |
| 7.22B | 4.06B | 3.19B | 1.28B | 2.91B | 5.12B | EBITDA |
| 5.66B | 5.17B | 3.96B | 3.64B | 5.64B | 6.61B | Net Income Common Stockholders |
| 2.94B | 2.81B | 2.26B | 1.11B | 4.95B | 3.90B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.94B | 4.16B | 5.65B | 2.68B | 3.49B | 3.22B | Total Assets |
| 38.31B | 57.38B | 55.82B | 49.70B | 49.54B | 46.78B | Total Debt |
| 11.64B | 17.57B | 15.23B | 12.73B | 12.04B | 10.08B | Net Debt |
| 8.69B | 13.41B | 9.60B | 10.05B | 8.57B | 6.86B | Total Liabilities |
| 20.71B | 31.75B | 31.63B | 28.57B | 27.36B | 26.53B | Stockholders Equity |
| 17.25B | 25.67B | 23.89B | 20.82B | 21.84B | 19.96B |
| Cash Flow | Free Cash Flow | ||||
| 3.48B | 3.26B | 3.30B | 3.51B | 3.04B | 3.77B | Operating Cash Flow |
| 3.61B | 3.39B | 3.52B | 3.90B | 3.39B | 4.02B | Investing Cash Flow |
| -5.48B | -5.74B | -3.14B | -2.77B | 31.91M | -1.67B | Financing Cash Flow |
| 2.13B | 803.86M | 2.70B | -1.92B | -2.88B | -1.79B |
Companhia Paranaense de Energia Pfd Technical Analysis
Neutral
8.80
Price Trends
8.08
Positive
7.37
Positive
6.96
Positive
Market Momentum
0.22
Positive
58.08
Neutral
44.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELP, the sentiment is Neutral. The current price of 8.8 is below the 20-day moving average (MA) of 8.80, above the 50-day MA of 8.08, and above the 200-day MA of 6.96, indicating a neutral trend. The MACD of 0.22 indicates Positive momentum. The RSI at 58.08 is Neutral, neither overbought nor oversold. The STOCH value of 44.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ELP.
Companhia Paranaense de Energia Pfd Risk Analysis
Companhia Paranaense de Energia Pfd disclosed 49 risk factors in its most recent earnings report. Companhia Paranaense de Energia Pfd reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Companhia Paranaense de Energia Pfd Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $6.22B | 4.17 | 26.38% | 15.35% | -4.14% | 13.02% | |
78 Outperform | $6.46B | 12.63 | 9.22% | 4.95% | -7.02% | 17.33% | |
77 Outperform | $6.46B | 11.60 | 9.22% | 4.90% | -7.02% | 17.33% | |
64 Neutral | $21.84B | 2,867.59 | 0.47% | 4.98% | 12.40% | -108.27% | |
64 Neutral | $8.54B | 10.30 | 4.24% | 4.37% | 4.14% | -13.04% | |
54 Neutral | $7.75B | 5.95 | 29.79% | 6.40% | -3.22% | 141.11% | |
49 Neutral | $1.80B | ― | -67.93% | ― | -7.58% | -819.97% |
* Utilities Sector Average
Performance Comparison
ELP
Companhia Paranaense de Energia Pfd
8.80
2.22
33.74%
BIP
Brookfield Infrastructure
33.45
6.94
26.18%
CIG
Companhia Energetica Minas Gerais
1.84
0.22
13.58%
HE
Hawaiian Electric
10.42
0.14
1.36%
AES
AES
10.88
-8.25
-43.13%
ELPC
Companhia Paranaense de Energia Sponsored ADR
8.17
2.39
41.35%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.